Finward Bancorp Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 4 - Loans Receivable (Tables)

Note 4 - Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

(Dollars in thousands)
	December 31, 2021			December 31, 2020
Loans secured by real estate:
Residential real estate	$	260,134		$	286,048
Home equity		34,612			39,233
Commercial real estate		317,145			298,257
Construction and land development		123,822			93,562
Multifamily		61,194			50,571
Farmland		-			215
Total loans secured by real estate		796,907			767,886
Commercial business		115,772			158,140
Consumer		582			1,025
Manufactured homes		37,887			24,232
Government		8,991			10,142
Loans receivable		960,139			961,425
Less:
Net deferred loan origination costs		6,810			3,871
Undisbursed loan funds		(229	)		(150	)
Loans receivable, net of deferred fees and costs	$	966,720		$	965,146

Financing Receivable, Allowance for Credit Loss [Table Text Block]

(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the twelve months ended December 31, 2021:

Allowance for loan losses:
Residential real estate	$	2,211	$	(32	)	$	81	$	220		$	2,480
Home equity		276		(1	)		1		81			357
Commercial real estate		5,406		(530	)		-		639			5,515
Construction and land development		1,405		-			-		714			2,119
Multifamily		626		-			-		222			848
Farmland		-		-			-		-			-
Commercial business		2,508		(158	)		36		(377	)		2,009
Consumer		26		(29	)		8		10			15
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(750	)	$	126	$	1,509		$	13,343

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the twelve months ended December 31, 2020:

Allowance for loan losses:
Residential real estate	$	1,812	$	(2	)	$	27	$	374		$	2,211
Home equity		223		-			-		53			276
Commercial real estate		3,773		(80	)		-		1,713			5,406
Construction and land development		1,098		(17	)		-		324			1,405
Multifamily		529		-			-		97			626
Farmland		-		-			-		-			-
Commercial business		1,504		(158	)		17		1,145			2,508
Consumer		43		(29	)		14		(2	)		26
Manufactured homes		-		-			-		-			-
Government		17		-			-		(17	)		-
Total	$	8,999	$	(286	)	$	58	$	3,687		$	12,458

Financing Receivable, Impairment Evaluation [Table Text Block]

	Ending Balances

(Dollars in thousands)	Allowance for individually evaluated for impairment reserves		Allowance for collectively evaluated for impairment reserves		Loan receivables		Loans individually evaluated for impairment		Purchased credit impaired loans individually evaluated for impairment		Loans collectively evaluated for impairment

The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2021:

Residential real estate	$	17	$	2,463	$	260,134	$	755	$	1,016	$	258,363
Home equity		4		353		34,612		147		137		34,328
Commercial real estate		386		5,129		317,145		1,600		-		315,545
Construction and land development		-		2,119		123,822		-		-		123,822
Multifamily		-		848		61,194		-		556		60,638
Farmland		-		-		-		-		-		-
Commercial business		277		1,732		115,772		524		1,073		114,175
Consumer		-		15		582		-		-		582
Manufactured homes		-		-		37,887		-		-		37,887
Government		-		-		8,991		-		-		8,991
Total	$	684	$	12,659	$	960,139	$	3,026	$	2,782	$	954,331


The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2020:

Residential real estate	$	173	$	2,038	$	286,048	$	868	$	1,297	$	283,883
Home equity		1		275		39,233		216		137		38,880
Commercial real estate		1,089		4,317		298,257		6,190		151		291,916
Construction and land development		-		1,405		93,562		-		-		93,562
Multifamily		-		626		50,571		95		621		49,855
Farmland		-		-		215		-		-		215
Commercial business		512		1,996		158,140		1,086		1,160		155,894
Consumer		-		26		1,025		-		-		1,025
Manufactured homes		-		-		24,232		-		-		24,232
Government		-		-		10,142		-		-		10,142
Total	$	1,775	$	10,683	$	961,425	$	8,455	$	3,366	$	949,604

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	December 31, 2021
(Dollars in thousands)	1-5		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	222,057	$	31,415	$	2,940	$	3,722	$	260,134
Home equity		32,873		692		415		632		34,612
Commercial real estate		253,424		48,148		12,011		3,562		317,145
Construction and land development		103,365		16,827		3,630		-		123,822
Multifamily		54,719		5,938		153		384		61,194
Farmland		-		-		-		-		-
Commercial business		95,412		18,058		1,915		387		115,772
Consumer		582		-		-		-		582
Manufactured homes		37,103		725		59		-		37,887
Government		8,991		-		-		-		8,991
Total	$	808,526	$	121,803	$	21,123	$	8,687	$	960,139

	December 31, 2020
(Dollars in thousands)	1-5		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	234,317	$	41,805	$	3,539	$	6,387	$	286,048
Home equity		37,044		933		761		495		39,233
Commercial real estate		222,892		55,202		11,983		8,180		298,257
Construction and land development		77,855		12,055		3,652		-		93,562
Multifamily		43,594		5,065		1,408		504		50,571
Farmland		-		215		-		-		215
Commercial business		135,671		20,067		1,341		1,061		158,140
Consumer		1,025		-		-		-		1,025
Manufactured homes		23,501		731		-		-		24,232
Government		10,142		-		-		-		10,142
Total	$	786,041	$	136,073	$	22,684	$	16,627	$	961,425

Impaired Financing Receivables [Table Text Block]

							For the twelve months ended
	As of December 31, 2021						December 31, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,683	$	3,017	$	-	$	1,689	$	113
Home equity		262		275		-		298		12
Commercial real estate		765		765		-		1,167		43
Construction and land development.		-		-		-		-		-
Multifamily		556		647		-		629		31
Farmland		-		-		-		-		-
Commercial business		1,205		1,324		-		1,369		52
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	88	$	88	$	17	$	145	$	2
Home equity		22		22		4		18		1
Commercial real estate		835		835		386		4,727		225
Construction and land development.		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		392		392		277		637		24
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	1,771	$	3,105	$	17	$	1,834	$	115
Home equity	$	284	$	297	$	4	$	316	$	13
Commercial real estate	$	1,600	$	1,600	$	386	$	5,894	$	268
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	556	$	647	$	-	$	629	$	31
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	1,597	$	1,716	$	277	$	2,006	$	76
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the twelve months ended
	As of December 31, 2020						December 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,895	$	3,228	$	-	$	2,028	$	115
Home equity		352		363		-		373		16
Commercial real estate		1,177		1,761		-		1,305		80
Construction & land development.		-		-		-		-		-
Multifamily		716		798		-		763		42
Farmland		-		-		-		-		-
Commercial business		1,497		1,514		-		1,591		80
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	270	$	314	$	173	$	174	$	6
Home equity		1		9		1		5		-
Commercial real estate		5,164		5,164		1,089		2,109		16
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		749		749		512		739		30
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,165	$	3,542	$	173	$	2,202	$	121
Home equity	$	353	$	372	$	1	$	378	$	16
Commercial real estate	$	6,341	$	6,925	$	1,089	$	3,414	$	96
Construction & land development....	$	-	$	-	$	-	$	-	$	-
Multifamily	$	716	$	798	$	-	$	763	$	42
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,246	$	2,263	$	512	$	2,330	$	110
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

Financing Receivable, Past Due [Table Text Block]

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investments Greater than 90 Days Past Due and Accruing
December 31, 2021
Residential real estate	$	2,507	$	824	$	2,142	$	5,473	$	254,661	$	260,134	$	31
Home equity		169		67		565		801		33,811		34,612		34
Commercial real estate		231		1,960		944		3,135		314,010		317,145		91
Construction and land development		5,148		283		-		5,431		118,391		123,822		-
Multifamily		-		-		109		109		61,085		61,194		-
Farmland		-		-		-		-		-		-		-
Commercial business		573		1,594		242		2,409		113,363		115,772		49
Consumer		-		3		-		3		579		582		-
Manufactured homes		633		171		-		804		37,083		37,887		-
Government		-		-		-		-		8,991		8,991		-
Total	$	9,261	$	4,902	$	4,002	$	18,165	$	941,974	$	960,139	$	205

December 31, 2020
Residential real estate	$	2,797	$	1,119	$	4,875	$	8,791	$	277,257	$	286,048	$	80
Home equity		616		323		416		1,355		37,878		39,233		29
Commercial real estate		1,172		237		680		2,089		296,168		298,257		437
Construction and land development		471		-		20		491		93,071		93,562		20
Multifamily		94		266		150		510		50,061		50,571		-
Farmland		-		-		-		-		215		215		-
Commercial business		845		96		269		1,210		156,930		158,140		-
Consumer		2		-		-		2		1,023		1,025		-
Manufactured homes		303		173		-		476		23,756		24,232		-
Government		380		-		-		380		9,762		10,142		-
Total	$	6,680	$	2,214	$	6,410	$	15,304	$	946,121	$	961,425	$	566

Financing Receivable, Nonaccrual [Table Text Block]

(Dollars in thousands)
	December 31, 2021		December 31, 2020
Residential real estate	$	4,651	$	6,390
Home equity		623		476
Commercial real estate		940		5,390
Construction and land development.		-		-
Multifamily		455		504
Farmland		-		-
Commercial business		387		1,039
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	7,056	$	13,799

Schedule of Accretable Yield from Financing Receivables [Table Text Block]

(dollars in thousands)	Total
2020	$	99
2021		21

(dollars in thousands)	Total
2020	$	1,820
2021		960

(dollars in thousands)	Total
2022	$	758
2023		300
Total	$	1,058